Category Archives: Bitcoin

The major cause of global inequality of income and of capital is due to financial exclusion. Money is a social construct. We have created a financial system which abuses the currency of trust to marginalise a big chunk of the global population.

About 2 billion people are unbanked. They are outside the financial system. The majority of those who are included in global finance, are enslaved through debt.

Why is a mortgage a 25 year agreement? To keep people working until their 50s and 60s. But the mortgage is not the only debt. We have car loans, personal loans, credit cards etc. Money is debt. It is the incentive to keep people doing the jobs they don’t like.

The blockchain promises to disrupt the global Ponzi schemes run by central banks and governments. Each person becomes a bank through a decentralised app on their smartphone. The bitcoin and other crypto currencies are bringing down the walls of traditional banks, symbols of global inequality of income and of capital.

Blockchain applications such as steemit.com and dtube.com are rewarding its users for the interactions they make on these platforms. More applications are being built in every sector of economic growth and development. In education we have AcademyCoin. You can find their white paper on their website.

What is bitcoin and what is the blockchain? Bitcoin is a crypto currency. A crypto currency is a digital currency with encryption. Encryption ensures the security of the bitcoin.

The blockchain is the protocol that solves the problem of trust. Every human interaction is compromised by trust. We have built institutions that guarantee trust such as banks and governments. But these institutions have been behaving badly and can no longer be trusted.

The blockchain is here to guarantee trust. It promises to get rid of the institutions that we have built because these institutions can be compromised and can no longer be trusted.

The blockchain has applications in every area of human interaction that requires trust. It keeps a public ledger of every transaction between human beings.

The blockchain is an accounting system which cannot be compromised without the simultaneous consensus of all the participants in the blockchain. It’s the biggest disruption to the status quo after the internet.

My advice is for everyone to try to understand how it works and what applications are being used in your area of expertise. The blockchain is building a new economy which resurrects dead capital and incorporates people who have been financially excluded from economic activities.

Inequality of capital and of income is the biggest driver of poverty and it is a deliberate machination. The blockchain will put a stop to that.

Blockchain technology has applications in every sector of the economy. We should not judge the blockchain on the implementation challenges of bitcoin and other crypto currencies. Doing so is like judging the internet on the implementation challenges of email.

The bitcoin has captured the public imagination more than any other application of the blockchain. The crypto currencies we have today are the first versions. They may survive or will be replaced by others. This is bitcoin 1.0.

The blockchain is the internet of value. It is a peer to peer network of trading value. The transactions are secured by encryption. Blockchain technology is the protocol of trust.

Human beings struggle with trust in their daily dealings. Fiat currencies have failed to guarantee that trust. We still keep paper money under lock and key. The distribution of fiat currency is biased towards the rich.

The blockchain promises to resurrect dead capital. It is an inclusive technology which makes everyone a bank. It is cheaper to keep your own crypto currency than for a traditional bank to keep your fiat currency. As has happened in many countries, the money can just disappear.

We have seen long queues at banks in Zimbabwe. Crypto currency solves the liquidity crisis. The problem is that it threatens the establishment. Central banks around the world have been able to run Ponzi schemes on its citizens. Crypto currency takes away that privilege.

The problems we have around the world are caused by inequality of income and of capital. Incumbent political parties in Africa have been able to abuse state resources to remain in power for decades. Blockchain technology can change that. Elections can be done on the blockchain to eliminate rigging and manipulation. The legitimacy problem can become a thing of the past.

So trust is an important aspect for humans. The current systems have tried and struggled to provide trust.

We should all try to understand how blockchain technology works so that we can identify or build applications in our areas of expertise.

Blockchain technology promises to deal with global inequality of capital and of income. It also promises to revive dead capital by allowing small money transactions by the World’s poor.

Blockchain technology applications ensure an incorruptible record of ownership. They offer a decentralised contractual agreement between the customer and the service provider.

I want to avoid all the technical jargon in this block post and focus on what it means for you and me and the global state of affairs.

Basically the global economy is run by central banks. They decide how much money is printed and Who has access to that money. The supply of money is centralised through central banks.

Blockchain technology promises to decentralise not only currency but other services where third parties monetise the transactions.

The beauty of blockchain technology is to decentralise all centralise systems to make them faster and cheaper.

This is not good news for governments and third parties. It’s the most disruptive technology since the internet decentralised the generation and distribution of information.

Blockchain technology is decentralising our value system which has been controlled by special interest groups.

The biggest disruption of blockchain technology is poverty alleviation. It brings dead capital into the mainstream economy. People who can not afford to open a bank account can open a crypto currency account and send small amounts of money. This is a big deal for poor countries with untrusted governments. It’s citizens can protect their value from corrupt leadership.

The genius of blockchain is not just decentralised systems but encryption. It solves the problem of double spend. The system is robust because it is decentralised.

I wanted to share some of the things I have learned and will Make a series of posts as I learn more.